The textile sector battling competition and sharp increase in raw material costs has got a breather.
The finance minister in her Budget speech said for incentivising exports, exemptions are being provided on items such as embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging boxes that may be needed by exporters of handicrafts, textiles and leather garments, leather footwear and other goods.
The major difficulty the garment exporters are facing is rise in yarn and fabric prices. The cost of fabric has gone up by 40% in the past one year because of costlier yarn prices.